Investec asset management move pays off in profit

The South African asset manager and investment bank, which is also listed in London, said operating profit totalled £228.15 million in the six months to the end of September, compared with £215.9 million a year earlier.

The bank said in September that it expected a "marginally higher" operating profit, citing sluggish demand for credit and a slow recovery in bad debts.

It said the regulatory environment remained challenging, but activity levels were starting to improve.

Investec, which operates in South Africa, the United Kingdom and Australia, has tried to counter the grim outlook for lending and investment banking by building up its asset management business.

It took over British wealth manager Rensburg Sheppards this year and its chief executive told Reuters in September that he could consider buying a similar business in Australia.

Investec said net interest income, the main measure of earnings from lending, totalled £321.17 million, compared with £297.36 million a year earlier.

Bad debt charges totalled £122.85 million, compared with £134.29 million a year earlier.